* Overnight records on Wall St, weaker yen power gains
* Sharp jumps on report of its relisting plans
TOKYO, June 20 (Reuters) - Japan's Nikkei share average pared gains after probing its highest levels in nearly two years on Tuesday, powered by record highs on Wall Street, a weaker yen and hopes for the global economy.
Naoki Kamiyama, chief strategist at Nikko Asset Management, said the bullish tone in the Japanese equity market stemmed largely from the stronger dollar and nascent economic recoveries in Japan, the United States and Europe.
In particular, he cited upbeat comments from New York Federal Reserve President William Dudley, who noted that U.S. inflation should rebound alongside wages as the labour market continues to improve. urn:newsml:reuters.com:*:nL1N1JG0CX
"I believe the economic trend will be unchanged" in coming quarters, even with uncertainty about the next Fed chair, Kamiyama added.
The next target for the Nikkei is 20,500, said Yutaka Miura, a senior technical analyst at Mizuho Securities.
On Wall Street overnight, the S&P 500 .SPX and the Dow Jones Industrial Average .DJI hit record highs, with growth sectors such as technology in favour again, as the upbeat Fed comments cheered investors. .N
The dollar was up slightly at 111.58 yenJPY= . FRX/
Sharp Corp6753.T jumped 7.7 after Jiji news agency reported that its president said it will apply for relisting on the first section of Tokyo bourse later this month. urn:newsml:reuters.com:*:nT9N1IB02A
Iwaki & Co8095.T soared 11.9 percent after scaling more than 11-year highs earlier. The pharmaceutical company on Monday hiked its outlook. urn:newsml:reuters.com:*:nXB1GEODZY
Askul Corp2678.T shares rose 8.9 percent, after the office supply vender on Monday revised up its profit forecast for the fiscal year that ended on May 20 and said it will pay an annual dividend. urn:newsml:reuters.com:*:nXB1BP3N4Gurn:newsml:reuters.com:*:nXB1MA2M4H
Shares of Takata Corp7312.T ended down 19.8 percent at 324 yen. On Monday, the Tokyo Stock Exchange lifted its suspension of trading in shares of the troubled maker of car safety equipment.
The broader Topix .TOPX and the JPX-Nikkei Index 400 .JPXNK400 were both up 0.7 percent at 1,617.25 and 14,382.03 respectively.
(Reporting by Tokyo markets team; Editing by Richard Borsuk) ((email@example.com;)(+81 3 6441 1870; Reuters Messaging: firstname.lastname@example.org))
Keywords: JAPAN STOCKS/CLOSE